IMPS Is Not Free: Comparison Of Charges By SBI, HDFC, ICICI, PNB And Others

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Posted by AI on 2025-08-21 05:53:46 | Last Updated by AI on 2025-08-21 08:35:52

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Recent regulatory changes now allow banks to charge customers for IMPS transactions. Here's a comparison of the charges being imposed by various banks, including SBI, HDFC Bank, PNB, and Canara Bank.

Lead: Instant Money Transfer (IMPS), the instant payment system in India, is no longer free. Recently, the National Payments Corporation of India (NPCI) clarified that it has not waived charges for IMPS transactions. Instead, it remitted the charges to the banks, which now have the discretion to pass them on to their customers.

Many banks, including State Bank of India (SBI), HDFC Bank, Punjab National Bank (PNB), and Canara Bank, have announced revisions to their IMPS transaction charges.

IMPS Charges Comparison:

1. SBI Implements Charges:

- SBI used to charge a nominal fee for IMPS transactions, but it was absorbed by the bank.

- Effective August 9, 2022, it has started charging customers Re. 1 per transaction, irrespective of the amount transferred.

- There is, however, one condition: customers who transfer funds using the SBI YONO app or YONO Business App, as well as SBI Bank Credit Cardholders who use IMPS to convert their credit card balance into a lump sum loan, will continue to enjoy free transactions.

2. HDFC Bank Revises Charges:

- HDFC Bank charged a minimum of Rs. 2 and a maximum of Rs. 5, depending on the type of account and the mode of transfer (using Mobile Banking, Net Banking, or Phone Banking).

- Effective August 9, 2022, the maximum charge has been increased to Rs. 15 for transactions up to Rs. 1 lakh, and Rs. 25 for transactions above Rs. 1 lakh.

- Transactions using the HDFC Bank Mobile Banking App, when initiated via UPI, and utility bill payments using IMPS, are exempt from these charges.

3. ICICI Bank Changes Transaction Fees:

- ICICI Bank did not charge its customers for IMPS transactions.

- Effective August 10, 2022, the bank now charges a nominal fee of Rs. 2 per transaction for amounts up to Rs. 2 lakh.

- There is no fee for transactions above Rs. 2 lakh.

4. Punjab National Bank's (PNB) Charges:

- PNB offers its customers a bundle of free IMPS transactions (up to Rs. 2 lakh) every month.

- Effective August 22, 2022, the charge for transactions worth less than Rs. 10,000 is Rs. 2, and Rs. 5 for transactions between Rs. 10,000 and Rs. 1 lakh.

- Transactions above Rs. 1 lakh are charged Rs. 10.

5. Canara Bank's Recent Changes:

- Canara Bank didn't charge its customers for IMPS transactions until last month.

- Effective August 1, 2022, the bank now charges Rs. 2 per transaction for amounts up to Rs. 1 lakh, and Rs. 5 for transactions above Rs. 1 lakh.

Conclusion: These banks have revised their IMPS transaction charges, but others, such as ICICI Bank, have only started implementing nominal fees. It's important to note that even with these changes, IMPS remains a swift and convenient way to transfer money, with fees generally remaining low.

As regulatory changes continue to reshape the Indian financial landscape, customers would be wise to consider these transaction charges when choosing a banking provider.

As a result, the decision of whether to absorb or pass on NPCI's IMPS fees has now become a strategic one for banks, with the potential to influence consumer choices and behavior moving forward.

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